Growth funds become a natural choice for investors when capital appreciation over the long term takes precedence over dividend payouts. These funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms whose value is projected to rise over the long term. Small cap funds are a good choice for investors seeking diversification across different sectors and companies. I

nvestors with a high risk appetite could invest in these funds. Small cap funds generally invest in companies having market cap lower than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently.

Below we will share with you 5 buy rated small cap growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) or a Zacks #2 Rank (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all small cap growth mutual funds, investors can click here to see the complete list of funds.

PNC Multi Factor Small Cap Growth A (PLWAX - MF report) seeks capital growth over the long run. PLWAX invests a lion’s share of its assets in small cap companies. The market capitalizations of these companies are identical to the size of the companies listed in the Russell 2000 Growth Index or less than the past three years average of the largest capitalization company listed in the index. The PNC Multi Factor Small Cap Growth A fund has returned 21.5% over the last one year.

PLWAX carries an annual expense ratio of 1.12% as compared to category average of 1.34%.

BlackRock Small Cap Growth Equity Investor A (CSGEX - MF report) invests a major portion of its assets in domestic small cap companies. CSGEX defines small cap companies as those which are having market capitulation size within the range of the Russell 2000 Index. CSGEX may also consider IPOs for potential investment. The BlackRock Small Cap Growth Equity Investor A fund has returned 15.6% over the last one year.

Travis Cooke is the fund manager and has managed CSGEX since 2013.

Hartford SmallCap Growth A (HSLAX - MF report) seeks capital growth over the long run. HSLAX invests a lion’s share of its assets in small cap companies having market capitalizations similar to those included in the Russell 2000 and S&P SmallCap 600 Indices. HSLAX maintains a multi-portfolio manager structure. HSLAX may invest a maximum of 20% of its assets in non-dollar denominated securities of companies located in foreign land. The Hartford SmallCap Growth A fund has returned 19.4% in the last one year.

As of June 2015, HSLAX held 350 issues with 1.96% of its assets invested in iShares Russell 2000 Growth.

Harbor Small Cap Growth Investor (HISGX - MF report) mostly invests in small cap companies, whose market capitalization lies within the range of the Russell 2000 Growth Index. HISGX invests a large portion of its assets in a diversified portfolio of equity securities of around 75 to 85 small cap companies. The Harbor Small Cap Growth Investor fund has returned 20.7% over the last one year.

HISGX has an expense ratio of 1.2% as compared to category average of 1.34%.

Invesco Small Cap Discovery A (VASCX - MF report) seeks capital appreciation. VASCX invests heavily in small cap companies that are believed to have strong capital growth prospect. VASCX may allocate a maximum of 25% of its assets in foreign companies. The Invesco Small Cap Discovery A fund has returned 19.3% over the last one year.

As of June 2015, VASCX held 105 issues with 1.64% of its assets invested in Cavium Inc.

To view the Zacks Rank and past performance of all small cap growth mutual funds, investors can click here to see the complete list of funds.